Kiev has fallen and the Soviets are pulling back as quick as possible.
The gate to the Crimea has also has been opened (or just about - this is the end of turn 38, the remaining Soviet holding the neck - top centre - were destroyed next turn; actually forced to retreat, but a loss all the same).
This is the end of the Axis turn 39. They are busy closing the pocket although significant Soviet assets have almost escaped (a few stacks of HQs and artillery). The Axis are having supply problems. More importantly two of their attacks - Melitopol in the far south (top left hand corner) and Chernigov in the far north (bottom right hand corner) - were repulsed.