Ukraine Moves to Legalize Pornography to Fund War Efforts

Darwin, 08 September : Ukraine has taken steps toward legalizing pornography as a way to raise funds for its war with Russia. According to The Wall Street Journal, the move is aimed at boosting the country’s economy and increasing war funding through tax revenues from the industry.

Currently, the production, storage, and distribution of pornography are illegal in Ukraine. Such activities can carry a prison sentence of up to seven years. Despite the restrictions, however, the adult entertainment industry has grown significantly in the country, according to the report.

Yaroslav Zhelezniak, chairman of Ukraine’s parliamentary Finance Committee, is backing a bill to legalize pornography. According to his estimates, legalizing the industry could generate as much as $25 million in tax revenue annually. The money could potentially be used to support the war effort.

Zhelezniak said the revenue could help cover the cost of purchasing around 30,000 drones. Speaking to The Wall Street Journal, he described the current situation facing adult-content creators as “sad and ridiculous.” He explained that creators face a dilemma: if they fail to pay taxes, they can be accused of tax evasion, but if they pay taxes, they may effectively expose themselves to criminal charges under Ukraine’s pornography laws.

According to the report, Ukrainian authorities have recently begun demanding taxes from adult-content creators. However, by paying those taxes, creators may effectively acknowledge their involvement in an activity that remains a criminal offense under Ukrainian law.

Before Russia’s full-scale invasion, Ukrainian authorities largely ignored much of the country’s adult entertainment industry. More recently, however, allegations of corruption surrounding the sector have emerged. According to Ukraine’s Prosecutor General’s Office, officials in three regions have allegedly accepted bribes of up to $20,000.

Citing The Wall Street Journal, the report says that around 7,900 Ukrainians earned more than $131 million collectively from OnlyFans in 2023. The figure is based on data from Phoenix International, the parent company of OnlyFans.

However, even after submitting tax information, many content creators have faced legal problems. Several creators in Kyiv have received letters accusing them not only of tax evasion but also of illegally producing adult content.

One of them is Svetlana Dvornikova. She said that one morning, while she was getting her daughter ready for school, police raided her home and seized $20,000 in cash, a laptop, and several hard drives.

Dvornikova alleged that police officers also knew the names and addresses of a list of webcam models. According to her, the officers offered to accept a bribe in exchange for keeping the matter confidential, but she refused. Another woman also reported being subjected to a similar police search. She was later ordered to appear in court but told The Wall Street Journal that she did not go because she feared she would be forced to pay a bribe.

Several OnlyFans models involved in legal battles have already left Ukraine for other European countries. Tax attorney Lesia Mykhalenko, who has provided legal assistance to more than 100 OnlyFans models, described such cases as “victimless crimes.”

According to Mykhalenko, pursuing such cases during wartime places unnecessary pressure on the legal system instead of allowing authorities to focus on the country’s defense.

After a case was filed against her, Dvornikova submitted a petition on the website of Ukrainian President Volodymyr Zelenskyy. Identifying herself as a regular taxpayer, she argued that instead of treating her as a criminal, the government should be grateful for the nearly $900,000 in taxes she had paid.

The petition received more than 25,000 signatures within a week. Following the petition, President Zelenskyy asked parliament to consider Zhelezniak’s bill on legalizing pornography.

The bill, jointly drafted by Zhelezniak and several other lawmakers, passed its first reading in Ukraine’s parliament in July this year. It is now awaiting a second reading.

Source: The Wall Street Journal