Ukraine Weighs Taxing OnlyFans Porn to Fund Drones and Defense

Ukraine is considering dismantling its ban on pornography as lawmakers seek to bring a large online adult industry into the tax system and redirect millions of dollars toward the country’s wartime needs.

Yaroslav Zhelezniak, an opposition lawmaker who chairs Parliament’s finance committee, estimates legalization could generate as much as $25 million a year, according to The Wall Street Journal.

He says that would be enough to finance about 30,000 drones.

The sum is modest against Ukraine’s stated annual defense requirement of $120 billion.

However, supporters argue the industry is already generating taxable income while operating under laws that expose creators to criminal prosecution.

A bill co-authored by Zhelezniak passed its first parliamentary vote in July and is awaiting a second reading.

Taxing an Illegal Industry

Ukraine prohibits the production, distribution, and possession of pornography, with penalties of up to seven years in prison.

At the same time, tax authorities are pursuing Ukrainians earning money from adult content, creating a legal contradiction for creators who disclose their income.

“These women either don’t pay taxes and face criminal charges for that, or they pay taxes and get charged with violating pornography laws,” Zhelezniak said. “It’s a tragicomic situation.”

The issue intensified after tax authorities received data from Fenix International, OnlyFans' U.K.-based parent company.

The figures showed that 7,900 Ukrainians earned more than $131 million on the platform in 2023. Authorities subsequently began contacting creators over unpaid taxes.

Some models were earning more than $20,000 a month. But filing tax declarations could also provide evidence that could be used in pornography investigations.

Creators Move Abroad

Svitlana Dvornikova, an OnlyFans creator with one million subscribers, regularly travels from her home near Ukraine’s front line to rented villas in France or Spain to produce content.

Working inside Ukraine could expose her to prosecution.

Police searched her home last spring and seized electronic devices and the equivalent of $200,000 in cash, which she said she had set aside for taxes.

“They had a list of webcam models, and knew all their addresses,” Dvornikova said.

She said officers offered to take half the money as a bribe and allow her to keep the rest. She refused.

Hundreds of Ukrainian OnlyFans models have moved abroad, while others have found ways to continue operating inside the country.

Tax lawyer Lesia Mykhalenko, who has represented more than 100 OnlyFans models, said the existing law diverts legal resources during wartime.

“This is a victimless crime,” she said. “It unnecessarily burdens the legal system at a time when we should be focused on defending the country.”

Corruption and Workarounds

Supporters of legalization also argue that prohibition has created opportunities for corruption.

In May, the office of Ukraine’s general prosecutor said police departments in three regions had each been receiving more than $20,000 a month in bribes linked to the industry.

Some businesses have adapted by operating behind other corporate structures.

Former waitress Iryna Mosiychuk runs Beezone, officially presented as a consulting company.

Its office outside Lviv contains webcam studios used by several dozen models serving mostly U.S.-based clients.

Mosiychuk told WSJ her models earn between $2,000 and $7,000 a month.

She pays about $5,000 in taxes each month and has told lawmakers that the amount could increase twentyfold if the business were allowed to expand.

Defense Revenue Drives the Debate

Dvornikova has also sought to frame legalization as a defense-financing issue.

In June 2025, she submitted a petition to President Volodymyr Zelensky’s website after the police raid.

Calling herself a “conscientious taxpayer,” she said she had paid 40 million hryvnias, about $900,000, in taxes, money she said could finance 100 pickup trucks or 2,000 drones.

The petition secured the 25,000 signatures required for a presidential response within a week. Zelensky said Parliament would consider legislation to legalize pornography.

Dvornikova’s case has not reached court, and she said it has been put on hold while lawmakers debate the bill.