The Stiletto was designed to carry six individually guided nuclear warheads, enough to destroy several Western cities, but may now end up providing satellites for phone networks and television broadcasters in countries it once targeted.

Russia has to dismantle all its ground-based intercontinental ballistic missiles with multiple warheads in order to meet the terms of the 1993 START-2 strategic arms accord with the United States.

It already launches Proton and Progress rockets from Baikonur, which are both modifications of nuclear rockets, but Russia's military has said decommissioned Stilettos may become the world's cheapest boosters.

"This is the first test launch of this missile, also known by NATO's classification as SS-19 'Stiletto'," Zatula said.

"This booster may be used to launch satellites into space."

Zatula said Strela had delivered a dummy satellite into low orbit, 120-160 km (75-100 miles) above the Earth. He declined to give the weight of the payload and said several more test launches were needed before commercial use could start.