The Soviet Union adopted with the AK-74 in 1974
He was speaking about AK-74M, which was adopted in early 1990s.
But anyway, even if you look at AK-74, it was already in many ways outdated back when it was introduced. Only two locking lugs, and not in a barrel extension, craptastic safety, slow iron sights, a large open gap in the receiver when bolt is closed permitting dust and dirt in, very inconvenient optics quick mount on the side rail (on AK-74M with its folding stock, if you use the rail, you can't fold the stock - WTF?) etc. Also pretty heavy in its basic configuration, and even heavier with optics because of that aforementioned side rail necessitating heavy mounts.
A good example of a modern AK-derived design is SIG SG 550. Same basic action, but it uses modern layout, modern ergonomics, and is much more accurate and flexible while being every bit as reliable.
and most Eastern European and former Soviet Republics use it today.
Most Soviet republics - true, but which of them are "allies"?
Most Eastern European states - not really true anymore, and wasn't really true even when USSR was still there. The only two I can think of that still use AK chambered in 5.45 round are Bulgaria and Romania (and for Romania it's not AK-74, but their own independently developed variant), and both are looking at options to migrate to, generally in 5.56 for NATO conformance. Poland uses the 5.56 Beryl, also not derived from AK-74, and significantly improved compared to the latter. All ex-Yugoslavian states either still use the original AK chambered in 7.62, or else have migrated to something in 5.56 (e.g. FN F2000 for Slovenia or VHS in Croatia). Czechs and Slovaks have both used their indigenous Vz.58 until recently, and are now switching to CZ-805. Hungarians use their own FEG AK variant, also in 7.62. Albanians use the original AKM. Did I forget anyone?
The only nation states I know of that still use the old AK-47 are in the Middle East, Africa, and Southeast Asia (including, I think, India). The big advantage of the AK-47 is that it is cheap enough to hand out like candy to guerrilla fighters, and it's reliable enough to still work after years of little to no maintenance (though it's effectiveness drops quite a lot when doing so).
Well, you kinda lump them together - it's not like there are a few nations in Middle East or Africa, and a great many of them use AK. But, as noted, in Europe, you're looking at least at Serbia, Montenegro, Bosnia, Albania and Hungary. And if you look at who else uses AK-derived guns chambered in 7.62x39, you'll have to also add Czech Republic and Slovakia (tho not for long) and Finland.
FWIW, I don't see the point of differentiation. AK-74 is only marginally different from AKM in matters other than caliber (and muzzle brake, but that can be easily retrofitted). All ergos are the same, reliability is the same, and all deficiencies are also the same.
In any case, I don't see why anyone in a sane mind would adopt AK-74M as a new service rifle in 2015. There are far better options available for anyone not sorely short on cash and not running a guerrilla army.
I mean, sure, you could take AK-74 and modernize it - make the receiver cover non-detachable so that a rail can be put on top, replace handguards with rails or something else allowing different mounts, replace leaf sight with a peep, replace the safety with a switch that can be manipulated by a thumb, replace the stock with folding and length-adjustable one that also has a cheek riser for better weld.
Russians did just that in their own modernization program, and the result is now known as AK-12 and is undergoing trials. Though it has a bunch of other changes (like lightened bolt) that are suspect wrt reliability, especially given the results of the trials so far.
But then again, unless you're short on cash, you could just get SG 551, which was designed with all those things in mind from ground up.