TL as planned, revisions will follow
-In India, Subhas Chandra Bose takes advantage of the British situation to organize a armed militant group, the Indian National Army. In a series of skirmishes, unorganized British expatriates are defeated and Bose declares India independent. With the diplomatic aid of an eccentric British fascist, Nigel Thackeray*, Britain, Germany, Italy, and the United States, among others, recognize India. India withdraws from the war shortly before the British sue for peace.
-Jan Smuts, determined to fight Nazi Germany alone if necessary, rapidly loses popularity with the Afrikaner public. An opposition group, the Continuists (so called because they feel an alliance or peace with Germany is the only way Afrikaner society will continue into the future) rapidly gains prominence under Louis Weichardt and Oswald Pirow. In December 1940, a bloodless coup removes Smuts from power, replacing him with Pirow. Smuts is imprisoned and Pirow essentially switches sides, making South Africa virtually a member of the Axis.
-Heydrich (who you may recall is now Fuhrer ITTL) asks for a secret feasibility study for invading Russia. In the months following the end of the conflict with Britain, Heydrich secures secret promises of aid from Mannerheim (who negotiated a peace with the Russians much as in OTL), Franco, Mussolini, Salazar, Quisling, Antonescu, Petain, Horthy and Hansson in the case of a Russian attack. This is collectively an anti-comintern alliance.
-Russian intelligence suggests that an attack on the Cacasus oil fields is probable. Stalin is wary of making a preemptive attack (as in OTL), but begins making some defensive preperations and begins searching for an alternate source of oil.
-The SS recruits heavily in Britain, Sweden, Finland, and occupied territory. It is sometimes jokingly referred to as the "German Foreign Legion". Some SS detachments are sent to aid the Japanese in China. In exchange for military, economic, medical, and strategic aid, the Japanese negotiate settlements with Australia and New Zealand and explicitly avoid any confrontation with the Americans (no Pearl Harbor).
-Soviet diplomats attempt to secure permission to search for oil in Alaska and lease wells. Wary of getting involved in European politics, American diplomats refuse. Already militarized due to concern over the war, the military presence in Alaska is stepped up. Canadian military alerts are also stepped up, although Canada withdrew from the conflict as the British did.
-Stalin finds his answer: North Sea oil. Using the puppet state of Laplandia as a base, the Soviets begin to conduct preliminary drilling operations in the North Sea.
-Heydrich steps up atomic and rocket research. Determined to protect the borders of German conquests, the military presence on the borders (including Laplandia/Norway) is increased and naval patrols also increase.
-Inevitably, the two forces collide. In April 1942, Soviet and German naval patrols exchange fire. Although the incident is brief, it gives Heydrich the excuse needed to unleash his preformed plan of invasion and rally Europe to a crusade against Communism. The uneasy peace gives way to what is later referred to by historians as "The Great Red Ousting", beginning May 1, 1942.
More to follow. My schedule is such that I can only do a bit at a time.
*Fictional character. I wanted a little wiggle room on some things, as you might imagine.