Resource requirements Germany lacked natural supplies of several key raw materials needed for economic and military operations. German planners in mid-1939 determined that the nation possessed only two to three months' supply of rubber stocks and three to six months of oil stocks.
Soviet-German 1939 agreements and the division of Eastern Europe On August 19, 1939, the Soviet Union and Germany entered
German–Soviet Commercial Agreement (1939) providing for the trade of certain German military and civilian equipment in exchange for Soviet raw materials. On August 23, they entered the
Molotov–Ribbentrop Pact, which contained secret protocols dividing the states of
Northern and
Eastern Europe into German and Soviet "
spheres of influence." One week after the Molotov–Ribbentrop Pact's signing, the partition of Poland commenced with
the German invasion of western Poland, followed by the
Soviet Union's invasion of Eastern Poland on September 17, which included coordination with German forces. Three
Baltic States described by the Molotov–Ribbentrop Pact,
Estonia,
Latvia, and
Lithuania, were given no choice but to sign a "
Pact of defense and mutual assistance" which permitted the Soviet Union to station troops in them. Eleven days after the Soviet invasion of Eastern Poland, the parties modified the secret protocol of the Molotov–Ribbentrop Pact in an agreement called the
German–Soviet Boundary and Friendship Treaty that contained a "Secret Additional Protocol." Among other things, the agreement allotted Germany a larger part of Poland and transferred
Lithuania to the Soviets. In addition, Germany faced critical shortages in oil, rubber and other materials needed to prosecute even just a western offensive. The only remaining state capable of supplying Germany with the requisite raw materials was the Soviet Union. On February 11, 1940, Germany and the Soviet Union entered into the
German–Soviet Commercial Agreement, an intricate trade pact in which the Soviet Union would send Germany 650 million Reichsmark in raw materials in exchange for 650 million Reichsmark in machinery, manufactured goods and technology. The trade pact helped Germany to surmount the British blockade of Germany.
The Baltics and Bessarabia In mid-June 1940, Soviet NKVD troops raided border posts in
Lithuania,
Estonia and
Latvia, resulting in those states' annexation into the Soviet Union, including the whole of Lithuania, including the Scheschupe area, which was to be given to Germany. On June 26, the Soviet Union
issued an ultimatum demanding
Bessarabia,
Bukovina, and the
Hertsa region from
Romania. After the Soviets agreed with Germany that they would limit their claims in Bukovina to northern Bukovina, Germany urged Romania to accept the ultimatum. With France no longer in a position to be the guarantor of the status quo in Eastern Europe, and the Third Reich pushing Romania to make concessions to the Soviet Union, the Romanian government gave in, following Italy's counsel and
Vichy France's recent example. After the Soviet occupation of Bessarabia, around 100,000 living in Bessarabia began immigrating to Germany. German acquisitions of
France, the
Netherlands, and
Belgium created additional demand while decreasing avenues for indirect supply. After long discussions and proposals, Germany presented the Soviets with a draft written Axis pact agreement defining the world spheres of influence of the four proposed Axis powers (Japan, Germany, Soviet Union, Italy). Eleven days later, the Soviets presented a Stalin-drafted written counterproposal where they would accept the four power pact, but it included Soviet rights to Bulgaria and a world sphere of influence focus on the area around modern Iraq and Iran. The Soviet offer came concurrently with massive economic efforts to Germany. The Soviets promised by May 11, 1941, the delivery of 2.5 million tons of grain—1 million tons above its current obligations. Stalin's written draft counter-proposal was ignored, which worsened tensions between the countries. ==Negotiations==