Kharkov is surrounded.
But that is the least of the Soviet's worries, at the end of the Axis phase of GT59 there are three Axis armoured divisions ready to strike into the north region of the Donbas.
Down south things were a little better. The Axis attacks were held after inflicting significant losses, but there are gaps all over the Soviet lines.
In the north the Soviets pulled as far as they dare. However Kharkov decided to surrender (two rolls on a D10 that required a 1 each time for this to happen). This will open up the northern supply line as well as freeing all those Axis formations.
The Soviets launch a counterattack in front of Stalino, destroying the Italian cavalry that had ventured too close. The Melitopol pocket continues to shrink, but not surrender.