I was looking at this map earlier and it got me wondering. http://en.m.wikipedia.org/wiki/New_Order_(Nazism)#/image/File:1945-03-01GerWW2BattlefrontAtlas.jpg
That is the Courland pocket.
In brief: The Soviet Union made a major push towards Memel and took it, cutting off a significant amount of German forces in the Baltic. The Soviets then tried and failed to destroy the encircled forces. Several battles took place. The war ended before the pocket could be destroyed, and the German soldiers surrendered to the Soviet Union.