I see 'import from parent module' as an anti-pattern in Python. Imports should be the other way around. Importing from modules's __init__.py is especially problematic. As you noticed, importing module foo.bar from foo/bar.py involves importing foo/__init__.py first, and you may end up with a circular dependency. Adding a print("Importing", __name__) to your init files helps see the sequence and understand the problem.

I'd suggest that you moved the code you want to import in conditions.py from __init__.py to a separate lower-level module, and just import some names from that module in __init__.py to expose it at higher level.

Let's suppose that you had some class Bar in your __init__.py. I'd reorganize it the following way.

__init__.py:

from bar import Bar  # exposed at the higher level, as it used to be.

bar.py:

class Bar(object): ...

conditions.py:

from . import Bar  # Now it works.

Ideally an __init__.py should contain nothing but imports from lower-level modules, or nothing at all.

If you get

ImportError: attempted relative import with no known parent package

when you do like

import . from something

especially from the script executed, just try

from __init__ import something

Even though it could be problematic when there are many __init__.pys in sys.path, it would be helpful in some simple situaions.

adding __package__ on top the script

__package__ = "pkg.dir.dir"

resolving the issue

in this case

__package__ = "rules"