Yes, there are a few important points there. Knocking out Leningrad eliminates about 900k men from the Soviets registry, captures some industry, eliminates the Baltic fleet as a threat (Soviet subs were raiding German Baltic convoys from Sweden), closes out a threat to Finland who can now use 200k more men against Karelia and Murmansk, frees up the Germans guarding that city, and allows its eventual use as a port for supply, plus yields some quality airfields.
Ignoring that it would cost the Germans and Finns so much men that it might as well be another Stalingrad, so much of the savings are lost by just attacking the city. Leningrad won't go down easy. Also not sure where that 900K number is coming from: the Leningrad Front which was defending the city consisted of a little under 300,000 men.
Uh... what? Stalin actually even contemplated abandoning Leningrad in 1941. He didn't hold much love for the city and regarded it as relatively too cosmopolitan. He doesn't need to attack and liberate it any more then he does any other Soviet city.On top of that the loss of the city is a serious political blow to the USSR and Stalin's reputation and political standing, which means he needs to focus major resources on attacking in terrible terrain in bad circumstances to recapture it. It ends up being a version of Rzhev, but much more favorable to the Germans.
Leaving aside the practicalities of taking Murmansk and that the Finns were bowing to heavy political pressure from the WAllies to not do it, it would probably cost much less then that. The WAllies can re-route much of the L-L shipments through the other routes which in any case were much more secure and important. Overall throughput may fall somewhat, but not in a way that will have significant impact on Soviet war economy and forces.Additionally the loss of Leningrad means that there are enough Finns and other resources to cut off Murmansk and render the Arctic convoys moot, thus denying the Soviets between 25-30% of all LL.
The Germans taking Leningrad in mid-1942 is certainly doable. But it's essentially throwing tons of men and material away for nothing more then a prestige victory.
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