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Full Breakdown

Ukraine Weighs Legalizing Pornography to Fund War Effort

9/8/2026, 10:31:14 PM

Core Proposal

Opposition lawmaker Yaroslav Zhelezniak, chair of the Ukrainian Parliament’s finance committee, is leading a bill that would legalise and tax the production, distribution and possession of pornography. The draft, co-authored by Zhelezniak, passed its first reading in July and is awaiting a second parliamentary vote. Zhelezniak estimates the reform could generate up to $25 million in annual tax revenue—enough, he says, to finance roughly 30,000 drones for the ongoing conflict with Russia.

Background & Context

Pornography remains a criminal offence in Ukraine, punishable by up to seven years in prison. Despite the ban, the adult-content market has flourished, especially on platforms such as OnlyFans. After Russia’s 2022 invasion, Ukrainian tax authorities obtained earnings data from Fenix International, the UK-based parent of OnlyFans. The information revealed that about 7,900 Ukrainian creators earned more than $131 million in 2023, creating a sizable untapped tax base.

The current legal framework forces creators into a “tragicomic” dilemma: paying taxes exposes them to criminal prosecution, while refusing to pay taxes risks tax-evasion charges. Law-enforcement raids have intensified, prompting accusations that the criminalisation of the industry fuels corruption.

Key Figures & Groups

  • Yaroslav Zhelezniak – Chair, Finance Committee, Verkhovna Rada; bill sponsor.
  • Lesia Mykhalenko – Tax lawyer who has represented over 100 OnlyFans models; critic of criminal-law approach.
  • Svitlana Dvornikova – OnlyFans creator whose home was raided; filed a petition for legalisation.
  • Volodymyr Zelenskyy – President of Ukraine; pledged parliamentary consideration of the bill.

Data & Statistics

  • 7,900 Ukrainian creators earned >$131 million on OnlyFans in 2023 (tax-authority data from Fenix International).
  • $25 million projected annual tax revenue from legalisation (Zhelezniak’s estimate).
  • Potential funding for ?30,000 drones (Zhelezniak’s calculation).
  • ?40 million hryvnias (about $900,000) paid in taxes by Dvornikova, cited in her petition.
  • Police in three regions allegedly received monthly bribes linked to the adult-content sector (Office of the Prosecutor General claim).

Official Statements & Responses

  • Zhelezniak described the current situation as “tragicomic,” noting that creators must either forgo taxes and face criminal charges or pay taxes and admit to illegal activity.
  • President Zelenskyy announced that, following Dvornikova’s petition, his office would ensure the parliament debates the legislation.

On-the-Ground Reports

During a raid on Dvornikova’s apartment, police seized $200,000 in cash, a laptop and hard drives. She reported that officers offered a bribe to return part of the money, which she declined. The raid prompted Dvornikova to launch a petition that quickly gathered over 25,000 signatures, leading to the suspension of her criminal case and the return of the seized cash.

Conflicting Reports & Gaps

  • While the projected $25 million revenue is cited by the bill’s sponsor, no independent fiscal analysis has confirmed the figure.
  • The exact scale of alleged police bribes remains unverified beyond the prosecutor-general’s allegation.

Verbatim Quotes

  • “They had a list of webcam models, and knew all their addresses,” — Svitlana Dvornikova

What’s Next

The bill now awaits a second reading in the Verkhovna Rada. President Zelenskyy has signaled that, should the legislation pass, Ukraine would replace criminal penalties for pornography with a regulated, taxable framework, formally integrating adult-content creators into the country’s economy.