SOFIA, Dec 2 (Reuters) - Bulgaria's government decided on Friday to allow the export of some products produced by processing Russian crude oil by its only oil refinery, controlled by Russia's LUKOIL, in a bid to keep the plant operational.

The interim government decided that the Balkan country would take advantage of its two-year exemption from the European Union ban on import of Russian crude that takes effect on Dec. 5 as part of the EU sanctions against Moscow over its war in Ukraine.

The government said it would ban the export of LUKOIL Neftochim Burgas output processed from Russian crude after March 5, with the exception of some of its products. It did not provide details on which products will be cleared for export.

Deputy Premier Hristo Aleksiev said earlier on Friday that some byproducts and derivatives that do not have a market in Bulgaria should be allowed for export to avoid overload of the refinery's depots and its eventual shutdown.

"It would make sense to ban the export of diesel fuel, which is needed for domestic consumption," Aleksiev told the parliament.

"But the refinery produces other derivatives and byproducts, which cannot be sold in Bulgaria. If some of them are not cleared for export, the refinery's depots will be full in 14 days and it would have to shut down," he said.

The government initially argued that the refinery, which processes about 7 million tonnes of crude per year and has switched to only Russian crude since the spring, should be allowed to export its fuels in order to stay operational and pay higher taxes in the Balkan country.

The European Commission has suggested that allowing exports of fuels produced by Russian crude could be a breach of the sanctions, and critics have accused the government of working in the interest of the Russian company.

Last month the refinery has said it may have to shut down if the government does not follow through on plans to allow the Russian-owned business to continue exporting. (Reporting by Tsvetelia Tsolova in Sofia Editing by Matthew Lewis)