The United States and China were expected to reach final agreement Wednesday on a draft U.N. Security Council resolution imposing sanctions on North Korea for its nuclear and missile tests, diplomatic sources said.

Chinese Foreign Minister Wang Yi said at a joint news conference with Secretary of State John Kerry on Tuesday that Washington and Beijing made "important progress" in their sanctions negotiations. Kerry also said the two sides have come up with a draft and were reviewing it.

Final agreement is expected when Wang meets with U.S. National Security Adviser Susan Rice, the sources said.

Other sources said that the draft calls for blacklisting three key state agencies overseeing Pyongyang's nuclear and missile programs as well as espionage operations -- the General Reconnaissance Bureau, the Ministry of Atomic Energy Industry and the National Aerospace Development Administration.

They are among about 30 individuals and entities to be sanctioned by the new resolution, according to the sources. Also to be blacklisted are North Korean trading and financial firms accused of involvement in illicit activities, they said.

The General Reconnaissance Bureau has been accused of masterminding a series of provocations, including the 2010 torpedoing of a South Korean warship and the 2014 cyber-attacks on Sony Pictures, while the other two agencies are in charge of the North's nuclear and missile programs.

Other possible sanctions could include restricting oil provision to the North, including a ban on jet fuel supplies, and banning imports of coal, iron and other mineral imports from the North, one of the biggest sources of hard currency for the impoverished nation.

Following final agreement between the U.S. and China, the Security Council is expected to circulate it among the other 13 council members for review. Unless any objection is raised, the draft will be referred to a formal council meeting for adoption.

It usually takes about three days to complete the process, the sources said.

After the North's Jan. 6 nuclear test, the Security Council pledged to adopt significant sanctions, but has not been able to do so because China has balked at imposing harsh measures on Pyongyang.

Amid the deadlock, the North flouted the Security Council again with a banned missile launch on Feb. 7.

Beijing has condemned the North's nuclear and missile tests but has been lukewarm about calls for a stern response. Analysts have long said Beijing fears that pushing Pyongyang too hard could lead to its collapse, instability on its border and the ultimate emergence of a pro-U.S. nation.

Chinese cooperation is key to putting together any meaningful sanctions and its implementation as it is one of the five veto-holding permanent members of the Security Council and the main provider of food and fuel aid to the impoverished North. (Yonhap)