 In addition to this devastating setback for Germany , the Soviet Union also suffered heavily from the conflict , losing huge tracts of territory , and vast losses in men and material . Despite the rapid relocation of Red Army armaments installations east of the Urals and a dramatic increase of production in 1942 , especially of armour , new aircraft types and artillery , the Wehrmacht was able to mount another large @-@ scale offensive in July 1942 . Hitler , having realized that Germany 's oil supply was " severely depleted , " aimed to capture the oil fields of Baku in an offensive , codenamed Case Blue . Once again , the Germans quickly overran great expanses of Soviet territory , but they failed to achieve their ultimate goals in the wake of their decisive defeat at the Battle of Stalingrad . 
