Legalizing Adult Content to Buy War Drones?... Ukraine Weighs Tax Solutions Amid Prolonged Conflict

The Only European Country Where Producing, Distributing, and Possessing Adult Content Is Illegal
A Move to Secure Tax Revenue Amidst Over Four Years of War

Ukraine, which has been at war with Russia for more than four years, is considering legalizing the online adult content market as a means of securing tax revenue.

On the 3rd (local time), near an apartment in Kyiv, Ukraine, which was attacked by Russian drones, a resident is seen carrying their dog while moving around. Photo by Reuters Yonhap News

On September 6, according to the Wall Street Journal (WSJ), the Ukrainian parliament is currently reviewing a bill that would ease criminal penalties for producing adult content. Unlike other European countries, Ukraine bans the production, distribution, and possession of adult content. Offenders can face up to seven years in prison if prosecuted.

However, in practice, a large-scale adult content industry is already in place. Some businesses continue to operate with the protection of corrupt police officers. More recently, controversy arose as Ukrainian tax authorities demanded tax payments from adult content creators. Reporting income earned from producing adult content would, in effect, require individuals to self-incriminate by revealing their illegal activities to the authorities.

Yaroslav Zheleznyak, Chair of the Ukrainian Parliament's Finance Committee, pointed out, "If you don’t pay taxes, you are punished for tax evasion, and if you do, you are penalized for violating laws related to adult content," describing it as a "tragicomic situation."

Previously, tax authorities obtained information from Phoenix International, the UK-based parent company of the online adult platform OnlyFans, regarding Ukrainian models' earnings. In 2023 alone, 7,900 Ukrainian nationals reportedly made more than $131 million (approximately 180 billion won) through OnlyFans.

After the tax authorities issued tax assessments, some Ukrainian adult content models moved their operations overseas. Some emigrated permanently, while others crossed the border every few weeks to broadcast online in neighboring countries. According to the WSJ, the taxes on income earned from these activities are now paid not to Ukraine, but to other countries.

Volodymyr Zelensky, President of Ukraine. Photo by AFP Yonhap News

To prevent the outflow of tax revenue, the Ukrainian parliament has put forward a bill to legalize adult content. Zheleznyak estimates that legalization could generate up to $25 million (about 3.37 billion won) in annual tax revenue—an amount sufficient to purchase 30,000 drones.

The bill, co-sponsored by Zheleznyak, passed the first parliamentary vote in July and is now pending a second review. Recently, President Volodymyr Zelenskyy responded to a public petition calling for legalization of adult content by stating that parliament would consider the issue.

The public petition to legalize adult content was spearheaded by adult model Svitlana Dvornikova, who has gained popularity on OnlyFans, amassing one million subscribers. In the petition, Dvornikova stated, "The government should thank me for the $900,000 (approximately 120 million won) in taxes I have paid, rather than branding me a criminal." She added, "That money could buy 100 military trucks or 2,000 drones."

This content was produced with the assistance of AI translation services.