Ukraine May Legalise Porn To Tax It — Could Raise $25M To Fund 30,000 Drones

Quick take – what’s on the table

Ukraine is exploring a rather unconventional revenue idea to help fund its war effort – legalising and taxing its largely underground pornography industry. The bill, backed by lawmaker Yaroslav Zhelezniak, aims to remove criminal penalties for producing and distributing porn involving consenting adults and bring that work into the formal economy.

Authored in part by Zhelezniak, who chairs Parliament’s finance committee, the proposal has cleared its first reading in Parliament and is awaiting further debate. The move has quickly drawn attention because of its unusual mix of culture, economics and national security.

“Creators are trapped between criminal penalties and tax rules – legalising would let us collect revenue and free up law enforcement,” Zhelezniak said, arguing the change would bring clarity and funds to the state.

$25 million for 30,000 drones – the numbers explained

Zhelezniak estimates that taxing a formalised adult-content industry could generate up to $25 million a year. Supporters point out that while this sum is modest compared with Ukraine’s overall defense needs, it could still be channelled toward specific equipment—Zhelezniak suggested the figure might be enough to finance around 30,000 military drones.

That claim has been framed against the broader scale of Ukraine’s wartime budget needs. Kyiv estimates it requires roughly $120 billion annually for defence — meaning the $25 million would be a small slice of the total. Still, proponents argue every domestic revenue stream helps as Kyiv seeks additional funding sources amid a prolonged conflict.

Why Ukraine wants to legalise pornography

The legal contradiction

Under current Ukrainian law, pornography is illegal even though online adult-content creation has grown substantially. That has created an awkward legal contradiction – creators face potential criminal penalties while authorities also try to tax their earnings.

Zhelezniak and other supporters say removing criminal penalties would regularise the sector and reduce the burden on police and prosecutors. They argue formalisation could also cut down on corruption reports that suggest some officials have taken bribes from people in the adult-content business.

OnlyFans data and the tax potential

Data cited by The Wall Street Journal shows the scale of the opportunity: about 7,900 Ukrainians reportedly earned more than $131 million through OnlyFans in 2023. That suggests a sizeable potential tax base if the industry were brought into the open and taxed like other sectors.

The proposal drew extra attention after a public petition calling for law changes gathered more than 25,000 signatures. President Volodymyr Zelensky later said Parliament would consider the issue, keeping the discussion high on the national agenda as lawmakers weigh legal, fiscal and moral considerations.

What happens next

The bill has cleared its first parliamentary reading and now faces further consideration and debate. If it moves forward, legislators will need to work out the details of regulation, taxation and enforcement to ensure the industry can be properly integrated into Ukraine’s economy.

Advocates say legalisation would create a predictable revenue stream and help protect creators from criminal charges. Critics may raise ethical or cultural objections, but the proposal highlights the lengths to which Ukraine is searching for new domestic funding options amid ongoing wartime pressures.