The mythical culture that turned out to be real was called The Xia.
Because it could. These countries (Baltic States) have strategic value because of their location (ports, places for airports). Also the governing ideology in the SU that time was a communism which supported a global revolution, uniting the whole world under in a communist utopia.
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It was the only one-on-one carrier battle, but even though it was a draw, the Allies stopped the Japanese advance.