Needless to say this allowed the Russians to push almost all the way to Kharkov in the center and almot to the Ploesti oil fields in the South, although my battered forces in the North managed to hold a line around Riga (which was occupied by the Soviets). The clobbered Rumanians have nothing serious to counter the Soviets from taking the oil fields, and the Soviet salient in the center seems unstoppable.
Another problem showed up at the same time when despite my 6 submarines sinking supplies in the Atlantic, the British managed to launch a major invasion of France in March 1942. Despite having no ports in France, some Allied units were still in supply 3 moves after the invasion, whereas when I went after Norway, my units were out of supply on the move after the invasion. So apparently the AI cheats or this is a bug. Again needless to say, I will be unable to stop them since they seem to have about 20 fleets or more in the channel.
Looks like the war is lost...

Henri