With almost 7,800 satellites supporting everything from military operations to cell phones, the impact of space nukes on Earth would be significant.

The prospect of Moscow launching nuclear weapons in space is sparking alarm worldwide, raising questions about the security of critical military systems, phone networks, and payment systems - even as President Vladimir Putin denies any such intention. The influx of billions of dollars into the space economy is also at risk.

American intelligence agencies are reportedly advising European allies that if Russia does put a nuclear weapon into orbit, it will likely be this year, although the agencies are ‘sharply divided’ in that assessment, the New York Times reports. White House Advisor Adm. John Kirby said the planned system was still in development, and President Biden said it was not clear if and when the system would be deployed.

There’s also speculation Moscow could launch a harmless ‘dummy’ warhead into orbit to leave the West guessing about its capabilities. Any deployment of space-based nuclear weapons would breach the Outer Space Treaty signed in 1967 and threaten national and economic security. NATO is positioning itself to defend against space-based attacks and protect allies through its Article 5 mutual defense clause in response to any such threat.
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Why would Russia want to nuke space?‍

It’s not clear why Russia would want to deploy nuclear weapons in space but the Federation of American Scientists can think of three reasons:

1. A Continuation of Existing Weapons Development - Putin threw money at the Russian nuclear complex in the 2000s to develop programs that undermined America’s advantages. That led to unorthodox programs like the Poseidon long-range, underwater nuclear-armed torpedo and the Skyfall nuclear-powered, nuclear-tipped cruise missile that can fly for days and attack its targets from unexpected angles. “Both novel systems have found new support under Putin, who has touted them in multiple speeches,” the Federation said, speculating the unnamed satellite killer could be another such device. 
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2: Nuclear ‘Insurance Policies - Russia may want programs and capabilities as leverage to prevent America from attacking Russia first. 
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3. Putin wants to be able to cripple America in a run-up to a direct conflict - “Being able to detonate a nuclear weapon in space and damage, if not destroy America’s extensive constellations of military satellites could be seen by Russia as both useful and even necessary to prepare for a possible conflict with the West and America,” the Federation said. “Its threatened use could be used to try and force America to back down in a crisis, or even used preemptively as a prelude to a major military move by Putin against NATO or America itself.” 

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Germany: A Threat To All‍

Russia’s nuclear space weapon is a risk for all, German Space Command chief Major Gen. Michael Traut said: “Nobody would survive an action like that.” Two senior officials briefed on the intelligence assessment said Putin might believe the threat of massive disruption could provide a new kind of deterrent, even if it meant Moscow had to blow up its own satellites, CNBC reports.

Deploying a space nuke could cause widespread, indiscriminate damage, affecting GPS navigation, weather monitoring, app-based car services, and many other functions that rely on almost 8,000 or so satellites.

Sending a nuclear weapon into orbit isn't solely a military concern; it would likely also jeopardize the space and terrestrial economies. The satellite insurance industry lacks coverage against nuclear arms, putting at risk hundreds of billions - if not trillions - of dollars, including services reliant on satellites, David Wade, an underwriter at the Atrium Space Insurance Consortium, told The New York Times.

Thousands of the satellites in space belong to private companies like Space X, so a nuclear space weapon could potentially target commercial satellites in low Earth orbit, where most commercial satellites operate. SpaceX's Starlink, for example, provides Ukraine’s Internet, demonstrating that satellite-based communications are critical on and off the battlefield. An atomic detonation would likely affect other countries’ satellites as well, including those operated by Moscow's allies.

Would Earth also be affected? "Radioactive particles generated by an explosion in orbit would spread around the globe at high altitudes," the Financial Times reports. "However, humans would not be anywhere near as exposed as they would be from the high levels of radiation produced by an explosion close to the ground."