The Armee HQ occupies a city. On the offensive an Armee is given an objective a nearby city and its Korps manoeuvre towards that city. Armees can be reassigned to different friendly cities within seven hexes by the player. The computer will also occasionally reassign an Armee to any friendly city on the map, possibly belonging to a different Army Group. There are three per side, Army Groups North, Centre and South for the Axis and Theatres A, B and C for the Soviets.
Responsibility is either to defend or capture the city.
That is, every city on the map has an assigned Theatre and Army Group. Borders between Army Groups is handled logically yet historically. An Armee of an Army Group can operate out of, or attack, a neighbouring Army Group's city, but only if the city is directly connected by rail to a city of the Armee's own Army Group. Dvinsk has a direct rail connection to Velikie Luki, an objective of Army Group North. Army Group North's 4th Panzer Armee can have Dvinsk as an objective.