Nikita Mazepin will be allowed to race in Formula 1 over the coming season after the FIA decided against banning Russian and Belarusian drivers.
Mazepin's place on the grid with Haas has been in doubt since the invasion began on February 24.
The sporting world has acted quickly to place sanctions on Russian and Belarusian bodies and competitions, while teams and individual athletes have also been hit.
The FIA called an emergency meeting for Tuesday to discuss the motorsport world's response to the crisis.
At that meeting it was decided that advice from the International Olympic Committee (IOC) would be followed in terms of how athletes can compete going forwards.
They will still be allowed to take part in competitions, but will be forced to do so as neutral athletes.
In addition, no Russian or Belarusian flags or national symbols will be displayed at any events, while the the two countries' national anthems will also be banned.
Furthermore, all FIA international competitions have been banned from taking place in Russia or Belarus, confirming the cancellation of the Russian Grand Prix.
FIA president Mohammed Bin Sulayem said in his opening remarks at the meeting: "As you know, the FIA is watching the developments in Ukraine with sadness and shock, and I hope for a swift and peaceful resolution to the present situation.
"We condemn the Russian invasion of Ukraine and our thoughts are with all those suffering as a result of the events in Ukraine."
He later went on to say: "I want to thank the council members for their prompt action in deciding these measures in the interests of sport and peace.
"We stand in solidarity with Leonid Kostyuchenko, the president of the Federation Automobile d'Ukraine, and the wider FIA family in the country.
"The measures taken today recognise the authority of the FAU in Ukraine and are also aligned with the recommendations recently made by the International Olympic Committee.
"We are in active discussions with our members as we continue to extend our compassion and support in their time of need. We sincerely hope for a peaceful resolution to their intolerable hardship."
The announcement from the FIA means Mazepin is legally allowed to race in F1, though it does not mean that he will definitely be on the grid for the season opener in Bahrain later this month.
Haas has removed the Uralkali sponsors from its livery – the Russian firm sponsoring the team is part-owned by the racer's father Dmitry Mazepin.
Haas boss Guenther Steiner insisted that the team would be able to survive financially without the mega-money deal, and added that he could make no guarantees over the future of Mazepin as a driver for the team.
Reacting to the World Motor Sport Council's statement, Haas said: "At this time we decline to comment."
If Mazepin were dropped from the team, Haas would have less than three weeks to find a replacement ahead of that race in Bahrain on the weekend of March 18-20.
