Story

Pretty much everying here is mainly speculation. You are welcome to make adjustments to this page if you find out new information. You can watch this series to get a better understanding of the story: https://www.youtube.com/watch?v=ol43aOJk8xA

Pre- Playthrough
Many hints in especially newer updates suggest the following:

The City is in a state of despair. Famine ranges across the land, causing the mass exodus.

It is very likely that the famine was mainly caused by the main power company. Using massive coal power plants, running on the coal mined out from multiple excavators. The pollution from those power plants caused massive economical death, making the landscape barren and devoid of life. While most people fled from the area, some people like Babka (Babushka) and Deda (Presumeably Babushkas Husband) remained. The bus also suggests that scientists are investigating the consequences of this mass pollution.

The first dam (in some relation to Deda), being one of the only power sources in the city was taken over by the Pursuers. Most likely causing Deda to retreat to his house at the mining site. While ingame his house seems to be on a massive hill, it is quite possible that he was one of the only people to not sell / give up his house to the power company (which dug out the entire area to supply coal to the power plants). Autonomous trucks were also developed to prevent trespassers from causing harm to the mining site and possibly to move resources. They will only attack the player if they are within the facility.

The Pursuers seem to be determined to prevent power going to the rest of the country, maybe to rerout the power to their mining facility, or to do otherwise with it.

During the Playthrough
The player will at first either attempt to sneak by the first power plant after exiting the Campsite, or provoke the Pursuers, making them chase the player.

Babushka will at first run away from the player if she encounters them while they are not being chased by the Pursuers. However if she sees that the player is being chased, she will later lead them to her house, showing them a Picture of her and Deda (Presumeably her husband).

The player may also help the car being chased by the Pursuers, following the car into a garage after. This will grant the player a car upgrade and repair. Plus allowing them to breach the barrier to the tunnel. After getting to the end of the tunnel, the player has to avoid the Pursuers yet again, and can after that turn on the power to yet another power plant, giving the rest of the area power.