ASMARA, May 23 (Reuters) - A press freedom group urged the European Union on Wednesday to adopt sanctions against Eritrea instead of engaging "one of Africa's most brutal dictators".

The European Commission's decision this month to embrace the isolationist Red Sea state in the search for peace deals to a range of conflicts in the Horn of Africa has sparked criticism from some members states and rights groups.

"Aside from reflecting a double standard, the EU's new policy towards Eritrea is disastrous for those who are exposed to the government's terror," Reporters Without Borders (RSF) said.

"It is inconsistent and dangerous, giving President Isaias (Afwerki) the chance to celebrate his victory, strengthen his grip and continue to renege on his promises with impunity."

But Asmara criticised the Paris-based group, accusing RSF of being a puppet for other nation's interests.

"RSF is not independent or credible. It singles out Eritrea. These people have been conducting an intensive smear campaign against Eritrea. It's not their agenda, it's the agenda of others," presidential adviser Yemane Ghebremeskel told Reuters.

"They get funding from some U.S. outfits, agencies which interfere in the internal affairs of others ... why should the EU impose sanctions on Eritrea?"

The Red Sea state routinely denies criticism from foreign-based rights groups, saying the world has long been prejudiced in favour of arch-foe Ethiopia with which it fought a 1998-2000 border war that killed some 70,000 people.

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