Russia to order 19.5 pct Rosneft stake sale next week - source

* Govt to order 19.5 pct Rosneft privatisation next week - source

* Budget to receive proceeds via Rosneftegaz dividends - source

* Budget should get cash from privatisation by Dec (Shanghai: 600875.SS - news) 31

* If plan fails cash to be taken from Rosneft - source (Adds details, quotes, background)

By Darya Korsunskaya

MOSCOW, Oct (Shenzhen: 000069.SZ - news) 28 (Reuters) - The Russian government will order the sale of a 19.5 percent stake in state oil firm Rosneft early next week, a government source told reporters on Friday.

The sale should bring in around 700 billion roubles ($11 billion) to the budget, which has been hurt by lower oil prices and comes at a time when the government is looking around for money to cover social spending.

The state this month sold a 50.1 percent stake in mid-sized oil firm Bashneft to Rosneft for 330 billion roubles.

The source said the budget should receive proceeds from the Rosneft stake sale by Dec. 31, with funds coming via dividends from state energy holding company Rosneftegaz, a Rosneft shareholder.

"In case we don't succeed in time, we will have to simply take the funds from Rosneft. They have cash," the source said. Rosneft declined to comment.

Italian bank Intesa is the sole bank helping to arrange the sale of the stake in Rosneft, which is under Western sanctions over Moscow's role in the Ukraine crisis.

The state is considering a scenario under which Rosneft might buy the 19.5 percent stake in itself from Rosneftegaz to resell to investors afterwards. That scheme in theory would allow the budget to receive the funds faster.

"Rosneft will give us money, receive shares and transfer them (shares) to investors in the first quarter. Rosneft will get these (19.5 percent) shares for transit only," the source said, saying there were a couple of "real investors."

He said the state might sell another 10 percent stake in Rosneft in 2017 but did not elaborate.

Rosneftegaz holds a 69.5 percent stake in Rosneft, with 19.75 being held by BP. ($1 = 62.9279 roubles) (Reporting by Darya Korsunskaya; Writing by Katya Golubkova; Editing by Andrew Osborn)