The city of Pogoren, Graznavia, is the fictional geographic location of the conflict that your survivors are stranded in. Details about the country's political and economic situation prior, during and after the war remain hazy or non-existent. The country appears to be Eastern-European based on the names of locations and people, and the available weaponry and technology. The currency is not mentioned in-game- but has purportedly lost all value, with banks closed at the onset of war. Trading is now conducted via barter.
The two opposing factions in the civil war are a government-supported faction of soldiers and a rebel-based faction (whose members call themselves the Vyseni Liberation Uprising). Innocent civilians are caught in the middle. Meanwhile, an international peace keeping force debates on the specific timetable to intervene.
The reason for the war is never revealed, but the conflict may have a nationalistic nature: by the notes and thoughts of civilians it seems like two sides were fighting in a war - the inhabitants of Graznavia called Grazni and the oppressed ethnic minority called Vyseni. Judging by the proclamation found in the Construction Site, Vyseni had a territorial dispute with Grazni and wanted to retake lands they claimed, including Pogoren. Moreover, Grazni and Vyseni speak different languages, which led to a massacre of innocent people by both sides.
According to the survivors and various notes, civil disorders spread across Graznavia and then came to Pogoren. Prior to the siege, protesters stormed the capital and attempted to burn down City Hall but whether this was successful is unknown. While there were protests and news of fighting in other parts of the country, the residents of Pogoren did not think the situation would escalate and continued to work at businesses, attend schools, and live day-to-day. During this relatively peaceful period of protest, the Graznavian army makes an offensive by bombing a settlement called Gravia, then follows up the attack by indiscriminately murdering rebels and civilians. A survivor named Arica flees Gravia amongst a terrified crowd, her father carrying her to Pogoren, on foot, in a single night.
The heavy battles that used to occur along the outskirts finally reach Pogoren. The Graznavian army and rebel forces clash at the capitol. During the initial fighting a militia member named Roman witnesses his fellow militia members murder any civilian that "looked at them funny" as a "precaution". This is because fighting occurred in the streets and identifying the enemy was sometimes difficult.
After a series of non-decisive battles, the borders between the two forces were more or less drawn. The Graznavian army encircled the city and laid siege, trapping civilians and rebel forces inside. Now trapped, Roman witnesses Rebel forces interrogate entire groups of people to identify government sympathizers. Roman knew that many of them were not but were executed for the wrong reasons anyway.
During this time, a survivor named Emilia had her entire family murdered at the hands of Milita members. Since her home was in an upper-class district and the militia members took everything of value - it is implied they murdered her family for their belongings. Hence, an entirely different level of war crimes were now being committed.
As the siege progressed food and supplies become scarce resulting in a period of looting and crime. The player's shelter will be attacked by looters, who become more and more desperate over time. At some point, a period of high crime occurs during which bands of looters are roaming the streets searching for supplies. Criminal elements pop-up at various locations, the status of the previous occupants unknown. People do whatever they must to survive.
Towards the end of the conflict, government forces target and massacre civilians. In some instances, the player may witness this firsthand.
As the war crimes escalate, the international peacekeeping force revises their timetable to intervene and sets out to bring an end to the conflict once and for all.
While fictional, the name appears loosely Slavic and the game developers are themselves based out of Warsaw, Poland. Given that the survivors reference real-world locations such as Canada and France and considering the weapon and electronics technology available to the survivors, the best approximation of time and location is estimated to be approximately 1990's in a nondescript Eastern European country.
This conjecture is supported by an interview with the developers who drew inspiration from real life experiences of an anonymous author who details his daily life in the Bosnian War, specifically Mostar's eighteen month siege in the early 1990's.
The city of Pogoren has many individual locations.
The city was formerly separated into various zones and districts- industry (Warehouse), commercial (Supermarket, Hotel, Central Square/Sniper Junction, Garage), Medical (City Hospital), a red-light district (Brothel), religious (St. Mary's Church), school (Shelled School), Construction zone (Construction Site), poor neighborhood (the Decrepit Squat), and middle to upper class neighborhoods (Small Apartment Building, Shelled Cottage, Abandoned Cottage, Semi-Detached House, Ruined Villa, Ruined Block of Flats, Quiet House.
The Developer's Twitter states that the game occurs in Ulraznavia, Pogoren. However, the in-game spelling appears as Graznavia, Porgoren.
It can be confirmed that the G or Ul symbol is G. At some thoughts it uses the same symbol at "Good that we have a guitar." Furthermore, the font, Aji Hand, has quite different characters for "G" and "Ul."
The literal translation Graznavia means the Town of God.