I think this came from formula 1 and it is used on all world championships under FIA.
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That's true and it would have been easier for him if the licence based system formerly used on the WRC and still useed on lower status international events was still in force. All he would have needed was an address in a suitable country who would issue him with a licence. Now he needs at least dual nationality and a non-Russian passport as well.
I found a post on Autosport forum that cites 2002 International Sporting Code: "All drivers, irrespective of the nationality of their licence,
participating in any FIA World Championship event, shall retain
the nationality of their passport on all official documents and in all
meetings and information bulletins."
So it's at least since 2002, but probably much, much sooner. The reason may be decision of some association that FIA is a member of, but it's really hard to find some sources about that.
If I correctly remember, it was because some formula 1 driver had some issues with his own ASN and was forced to use different licence from different country. As they didnt want to have french driver with singapore flag (it is only example, I dont know real countries), they have changed the regulation.
From memory, and it's from the mid 90s I think, there was also Eddie Irvine, from Northern Ireland, with the Irish tricolour on his overalls - as that's who issued his racing licence at the time; which caused 'issues' in Northern Ireland.
I can also remember a few Audi Sport drivers with the Japanese flag, as they raced in Formula Nippon; they weren't Japanese.
I thought it was to become a sports federation of the IOC which only happened after Todt became president, and a whole ruck of crap between FIA and European Commission in that decade. It's an IOC rule anyway.
The Rally Ireland bid is gathering momentum:
https://dirtfish.com/rally/wrc/irela...-step-forward/
Of the choice between Limerick, Waterford and Kerry I sincerely hope Kerry wins so we see WRC Ireland heading up Molls Gap, among other classic Rally of the Lakes stages. I checked out the proximity of Waterford to Sally Gap and Aughavannah, but it may be too long a trek without a remote service ;)