Kompromat
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That explains this article Iraq's F-16s Have A Cool Paint Job But Antiquated Weapons
The US refused the sale of AH 64-E until Iraq bought the MI 28Ne, after a deal for MIG 35's or Flankers the US won't have a reason to block AMRAAM anymore.
IMHO - Iraq shouldn't stick its boats to Russians by buying both Mig-35 and Su-35. You need to diversify your arms intake. Buy Su-35 as its an awesome machine plus go for J-10Bs or JF-17 Thunder Block IIIs. If you have 3 suppliers, it means you will benefit the most by competition between them.