If you look, almost every nation, militia, police force, terrorist organization, or any armed group that does not use US-made weapons uses Russian or Soviet-made Kalashnikov rifles. A few others use Israeli-made UZI's, and others use an assortment of others, essentially whatever they get their hands on.
Iraq undoubtedly bought weapons from the Soviets before sanctions were in place, they bought weapons from the US before sanctions were established. After the sanctions, black market suppliers behaved exactly the same, and continued to sell weapons to those who should not have them. Night vision equipment and anti-tank missiles are small and easy to smuggle. Once weapons left the Russian warehouses, Russia had no more control over where they went than I would have over the cold germs that escape when I cough.
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