Porn for drones: Ukraine considers legalizing pornography to fund war
What's the story
Ukraine is mulling over legalizing and taxing its largely underground pornography industry to raise money for its ongoing war against Russia. The move could raise as much as $25 million in tax revenue to fund around 30,000 drones, according to a report by The Wall Street Journal. A bill seeking to legalize pornography has already passed its first reading in Parliament and is now awaiting a second.
Financial estimate
Lawmakers say even small additional revenue stream could help
Lawmaker Yaroslav Zhelezniak, who chairs Parliament's finance committee and co-authored the legislation, estimates that taxing the industry could generate up to $25 million annually.
The proposed revenue would be a drop in the ocean compared to Ukraine's overall wartime spending. Kyiv estimates it needs roughly $120 billion annually for defense.
However, lawmakers say even a small additional stream could help pay for critical military equipment.
Corruption concerns
Proposal seeks to resolve legal and tax contradiction
The proposal seeks to resolve a legal and tax contradiction in Ukraine.
While the adult-content industry has grown rapidly, producing and distributing pornography remains illegal.
This means creators who declare their income to tax authorities can potentially expose themselves to criminal prosecution.
The situation has also raised concerns over corruption. According to the report, the General Prosecutor's Office recently discovered cases in which officials in three regions accepted bribes of up to $20,000 from people involved in the adult-content business.
Industry scale
Authorities' attempts to collect taxes have exposed legal dilemmas
Despite its illegality, the scale of the online pornography industry has become hard to ignore.
Data cited by The Wall Street Journal showed that around 7,900 Ukrainians earned over $131 million through OnlyFans in 2023.
Authorities' attempts to collect taxes from creators have also exposed legal dilemmas.
Some creators who disclosed their earnings reportedly faced scrutiny over tax-related issues and alleged violations of pornography laws.
Because of the uncertainty, numerous Ukrainian OnlyFans creators have left the country or relocated temporarily.
Petition impact
Petition from adult-content creator spurred legislation consideration
One creator, Svitlana Dvornikova, said cops raided her home one morning, seizing $20,000 in cash, her laptop, and hard drives.
She claimed officers offered her the chance to pay a bribe to make the case disappear but she refused.
After a criminal case was opened against her, she filed a petition, which was later published on President Volodymyr Zelensky's website.
The petition garnered over 25,000 signatures within a week, after which Zelensky said Parliament would consider the proposed legislation.