Ukraine weighs decriminalizing pornography to generate tax revenue for military needs

 

Ukrainian lawmakers are advancing a bill to decriminalize the production and storage of adult pornography among consenting adults, aiming to bring a large underground industry into the formal tax system and raise funds amid the ongoing war with Russia.

The legislation, co-authored by Yaroslav Zhelezniak, who chairs the Verkhovna Rada’s finance committee, passed its first reading in July 2026 by a vote of 231-8 (with three abstentions). It is awaiting a second reading. Proponents estimate the change could generate roughly $25 million in annual tax revenue—enough, according to Zhelezniak, to purchase approximately 30,000 drones for the war effort.

The move follows revelations that nearly 8,000 Ukrainian creators on the platform OnlyFans earned more than $131 million in 2023 alone, according to data shared with Ukrainian tax authorities by the platform’s parent company. Under current law, the production, distribution, or possession of pornography remains a criminal offense punishable by up to seven years in prison, creating a contradiction in which creators who declare earnings for tax purposes risk prosecution for the underlying activity.

Supporters argue legalization would reduce opportunities for police corruption and bribery associated with the underground industry while directing revenue toward defense needs. Ukraine faces significant military expenses and a reported multi-billion-dollar budget gap. The bill would maintain or strengthen criminal penalties for child sexual abuse material, revenge pornography, deepfakes, extreme content, and distribution involving minors.

A petition by adult content creator Svitlana Dvornikova, who said she had paid substantial taxes before facing a police raid, gathered tens of thousands of signatures and helped spur the legislative effort. Critics, including some religious organizations, have expressed concerns about potential social impacts. The proposal remains under consideration and has not yet become law.

The discussion has drawn international attention as an example of wartime fiscal creativity, with the modest projected revenue framed by backers as a practical contribution to Ukraine’s drone-centric defense strategy rather than a comprehensive solution to broader funding shortfalls.