Ukraine considers legalizing pornography to fund war drones

Synopsis

Ukraine is weighing a bill that could legalise and tax its pornography industry, with lawmakers estimating it could generate up to $25 million in revenue, enough to fund around 30,000 drones for the war against Russia. The move follows growing legal contradictions where adult content creators face prosecution both for declaring and for not declaring their income.

Ukraine's Parliament is considering a bill that would legalise pornography and bring the country's adult entertainment industry into the formal tax system, a move lawmakers say could generate as much as $25 million in revenue for the war against Russia, according to a report by The Wall Street Journal.

The bill, backed by lawmaker Yaroslav Zhelezniak, who chairs Parliament's finance committee, estimates that the money raised could be enough to fund around 30,000 drones for the front lines. It has already passed its first reading in July and is now awaiting a second.

Creators Caught Between Tax Law And Criminal Law

Producing, possessing or distributing pornography currently remains illegal in Ukraine and can carry a prison sentence of up to seven years. Despite this, the adult content industry has continued to grow, reportedly with the help of corrupt police officials.

In recent years, Ukrainian tax authorities have begun seeking taxes from adult content creators. But doing so has created an unusual bind: creators who declare their earnings risk drawing attention to activity that remains criminal under the country's pornography laws.

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"These women either don't pay taxes and face criminal charges for that, or they pay taxes and get charged with violating pornography laws," Zhelezniak told the Journal, calling it a "tragicomic situation."

Bribery And Police Raids

The Journal reported that Ukraine's General Prosecutor's office recently uncovered cases in three regions where officials allegedly received bribes of up to $20,000 in connection with the adult content trade.

OnlyFans creator Svitlana Dvornikova told the Journal that police raided her home one morning while she was getting her daughter ready for school. Officers seized $20,000 in cash along with her laptop and hard drives.

"They had a list of webcam models, and knew all their addresses," Dvornikova said. She added that officers offered her a chance to pay a bribe to make the case disappear, which she refused. Another woman told the Journal that police searched her apartment in similar fashion; she later avoided a court appearance out of fear she would be pressured into paying a bribe.

The uncertainty has pushed several creators, including Dvornikova, to leave Ukraine or temporarily relocate elsewhere in Europe.

A Multi-Million Dollar Industry

According to figures cited by the Journal from Fenix International, OnlyFans' parent company, 7,900 Ukrainians earned more than $131 million through the platform in 2023 alone.

Tax lawyer Lesia Mykhalenko, who has represented more than 100 OnlyFans creators, told the Journal that prosecuting them is a poor use of government resources during wartime. "This is a victimless crime," she said. "It unnecessarily burdens the legal system at a time when we should be focused on defending the country."

A Petition That Reached Zelensky

After a criminal case was launched against her, Dvornikova filed a petition that was later published on President Volodymyr Zelensky's website. Calling herself a "conscientious taxpayer," she argued the government should not treat her as a criminal after she had paid nearly $900,000 in taxes, an amount she said was equivalent to "hundreds of Russians killed on the front line."

The petition gathered more than 25,000 signatures within a week, according to the Journal. Zelensky subsequently said Parliament would consider Zhelezniak's proposal to legalise pornography.