In 1942 scenario, a Baltic navy is a viable option for Germany. A carrier on G1 and a transport or two will enable Germany to do battle in Norway, Finland and Karelia.
Never underestimate the ability to use German planes to counter the Russian stacks of inf. With German inf, art, and air, Germany can create their own dead zones to keep Russia from advancing.
In 1942, Germany attacks AFTER Russia. This can be key as then Italian and Japanese ftrs can be used to cover German ground thrusts. Assuming Japan can afford a ftr or two, but this may not always be the case as a USA pacific strategy is quite viable in 1942.
Keep reading in this thread for further discussions. There are plenty of quality strategy posts here.