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PBEM game, '39 scenario, my AXIS opponent invaded the Baltic States in early '40. Then proceeded to take France and Norway.

I failed to look at the diplomacy screen, so don't know what the leaning of the Soviets was at that point. Apparently the Soviets were not happy:

I'm hoping this means that the Soviets will mobilize and start working towards a war economy. And I'm wondering what the AXIS is going to do, now that their forces in France are recuperating from that campaign, and incapable of moving east with their entire army very soon.

Should the Soviets declare war and advance against Germany's token defense force in Poland and the Baltics, just to put a little more space between it and the full force of the enemy? (The Balkan States have still not joined the AXIS.) Or should they await developments?

The situation on the border. Stalin did not give his military any warning about this early declaration, obviously.

You need to DOW when ready. you should be at 100% status at this point, full production.