BRUSSELS—European Union leaders on Friday rejected a Franco-German proposal to hold a summit with Russia after Poland and Baltic countries said it would send the wrong message as East-West ties deteriorate. After U.S. President Joe Biden met Putin in Geneva on June 16, French President Emmanuel Macron said a first EU summit with Putin since January 2014 would be “a dialogue to defend our interests.” He said the EU must be proactive in its diplomacy with Russia. Italy, a big exporter to Russia with investments in Russian energy, also backed a summit with Putin, Prime Minister Mario Draghi said. “Russia is an important player on the economic and political front … We must have an active dialogue,” Draghi told reporters at the Brussels summit. But late-night talks between the EU’s 27 leaders failed to secure an agreement, German Chancellor Angela Merkel said. France and Germany want to be able to …