occupied Bessarabia, Northern Bukovina, and the Hertsa region Second Vienna Award Northern Transylvania Southern Dobruja Treaty of Craiova Ion Antonescu political Lithuania Bulgaria reparations Bessarabia Latvia Romania Estonia Axis Soviet Union
In June 1940, the Soviet Union occupied the entire territories of Estonia, Latvia and Lithuania, and the Romanian regions of Bessarabia, Northern Bukovina, and the Hertsa region. In August 1940, Hitler imposed the Second Vienna Award on Romania which led to the transfer of Northern Transylvania to Hungary. In September 1940, Bulgaria demanded Southern Dobruja from Romania with German and Italian support, leading to the Treaty of Craiova. The loss of one-third of Romania's 1939 territory caused a coup against King Carol II, turning Romania into a fascist dictatorship under Marshal Ion Antonescu with a course set firmly towards the Axis in the hopes of a German guarantee. Meanwhile, German-Soviet political rapprochement and economic co-operation gradually stalled, and both states began preparations for war.
