Ukraine is considering legalising and taxing its pornography industry as the country looks for new sources of revenue to support its war effort against Russia.
Pornography production and distribution are currently illegal in Ukraine and can carry a prison sentence of up to seven years. However, the country has struggled to shut down a large underground industry, with officials and activists alleging that corruption within the police has allowed parts of the business to continue operating.
The issue has gained fresh attention as Ukraine faces enormous defence costs. According to a report by The Wall Street Journal, the country needs an estimated $120 billion a year for its defence requirements.
Opposition lawmaker Yaroslav Zhelezniak, who chairs Parliament’s finance committee, is backing a bill that would legalise the industry and bring it under a taxation system. The legislation passed its first vote in July and is awaiting a second reading.
Zhelezniak estimates that legalisation could generate as much as $25 million annually in tax revenue. While relatively small compared with Ukraine’s overall wartime spending, he said the money could potentially fund around 30,000 drones for the military.
The debate has also highlighted the unusual situation faced by Ukrainian content creators working on platforms such as OnlyFans. Tax authorities reportedly obtained financial information from Fenix International, OnlyFans’ UK-based parent company. The data showed that around 7,900 Ukrainians earned more than $131 million through the platform in 2023.
Authorities subsequently began sending tax-related notices to creators, including some earning tens of thousands of dollars every month. But paying taxes could also expose them to prosecution under Ukraine’s existing pornography laws.
Svitlana Dvornikova, an OnlyFans creator with around one million subscribers, became one of the most prominent voices calling for legal reform. She said police searched her home and seized electronic devices and about $200,000 in cash that she had reportedly set aside to pay taxes.
Dvornikova also alleged that officers offered to take part of the money as a bribe. She refused. Her case has not yet reached court, and proceedings were reportedly paused while Parliament considers the proposed legislation.
Other people connected with the industry have similarly argued that legalisation could reduce corruption and allow the government to collect significant tax revenue.
The campaign gained momentum after Dvornikova's petition reportedly collected more than the 25,000 signatures needed to trigger a presidential response. President Volodymyr Zelensky said Parliament would consider legislation on legalising pornography.
Supporters say the change could bring an existing underground industry into the legal economy while reducing pressure on the justice system and generating additional funds for Ukraine’s war effort.
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