New Offensive
At the northern side of the Finnish main offensive group, Oinonen, with the Cavalry Brigade and the 2nd Jäger Brigade, was ordered to advance to the old border. Opposing them were parts of the IR52/71 Division, 80th Border Guard detachment and the IR126/71 Division, which was commanded by Maj. Valli (a Finnish-born Communist who had emigrated to the Soviet Union during the Finnish Civil War). Many Karelian, Ingrian and Finnish-born Communists served in its ranks, as well as many veterans from Kuusinen's People's Army of the Winter War.
The probing attacks started on July 7, then the main attack started, with the southernmost 2nd Jäger Brigade reaching Tolvajärvi by July 14. From there the Brigade began a northern encirclement towards Ägläjärvi. The attack of the Cavalry Brigade didn't succeed as well, and the Finns were forced to encircle the well prepared Soviet hillforts, which Finns were unable to capture directly, due to lack of artillery and air support.
By that time the German 163rd Division (Lt. Gen. Engelbrecht) (lacking one brigade and a part of the artillery, which was diverted to Salla during transport) had reached the front at Tolvajärvi and attempted to breach Soviet positions there on July 21, with only one brigade, but failed as the Soviet forces turned out to be stronger than expected.
A new offensive started on July 25, when two battalions from the German IR310 and one from the Finnish IR56 started attacking along the railroad, near the Näätäoja station. At Tolvajärvi, Engelbrecht decided to use the route the 2nd Jäger Brigade had opened, and ordered them, and one German infantry battalion from the IR307, to capture the village of Ägläjärvi, to sever the Soviet supply route to Tolvajärvi. The attack failed and the Soviets managed to keep the road through Ägläjärvi open, although they lost a supply depot during the fighting.
Lt. Gen. Engelbrecht exchanged the Cavalry Brigade with a couple of infantry battalions which were ordered in defence, and ordered the Cavalry Brigade to cut the road between Tolvajärvi and Ägläjärvi, by advancing through the forests. The attack started August 2 and by August 4 they reached the road and started advancing towards Tolvajärvi and Ägläjärvi. On August 3, the 2nd Jäger Brigade and German I/IR307 started attacking the village of Ägläjärvi, which they captured on August 5. On August 6 they contacted the Cavalry Brigade south of Ägläjärvi. The Soviets continued their retreat to Aittojoki, where they blew up the bridges and dug in. Also, their northern forces feared encirclement from Ägläjärvi, and left their fortified positions there August 8, retreating east of Kuolismaa.
Read more about this topic: Finnish Reconquest Of Ladoga Karelia (1941)
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