The town in which Lilja lives, is in real life called Paldiski and is located in Estonia, not far from the capital Tallinn. The submarine base has now been destroyed. Some scenes are indeed shot in Paldiski, but many in Tallinn - in the districts of Kopli and Lasnamäe.
Lilja: [Volodja gives her the world as a present]
Sorry, but I'm not sure it's a good present. It's windy, there's a mist. It's so cold. And this world isn't that good.
Yes, she does. In the end we see that Lilya and Volodya play with the basket ball ont the terrace of the builing. They both have feathers indicating that they are Angels.