 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.
